News

IRS Relaxes Safe-Harbor Amendment Restrictions

On January 29, 2016, the IRS published Notice 2016-16, which represented a significant (and welcome) departure from its prior stance on mid-year amendments to safe harbor plans. The old rule of thumb was that such amendments were generally forbidden, with a handful of named exceptions. The new framework essentially reverses that – most kinds of amendments

New Responsibilities for Retirement Plan Sponsors – Hardship Documentation

On April 1st, the IRS clarified its requirements for sponsors of qualified retirement plans (like 401(k) plans) that permit participants to take hardship distributions. Where sponsors may have once taken a participant at his word regarding his “immediate and heavy financial need,” the new IRS communication specifies that the burden is now on the plan sponsor

An Employee’s Guide to Retirement Savings – “Amount” (Part 3 of 4)

As a VERY general rule-of-thumb, the amount you contribute to your company retirement plan will have a greater impact to your overall account balance than the portfolio’s investment performance until the overall account reaches approximately two times your annual income. To say it a different way, if you are unhappy with the pace your retirement

Post-DOMA: How the Definition of Marriage Affects Qualified Plans

Over the past several months, the IRS has worked to clarify qualified retirement plans’ obligations in the wake of the June 26, 2013 ruling in State v. Windsor, which struck down the federal Defense of Marriage Act. The landscape continues to evolve, but generally speaking, employers need to make sure the plans they sponsor are

What may my 401(k) be worth?

It may surprise you how significant your retirement accumulation may become simply by saving a small percentage of your salary each month in your 401(k) plan. Use this calculator to estimate how much your plan may accumulate for retirement.

What is my current year required minimum distribution?

Current tax law specifies that once you reach age 70 1/2, you must begin taking RMDs annually from your IRAs and other retirement plans. Generally, the RMD amount is determined based on your prior year's IRA balance of all of your IRA assets divided by your life expectancy. If RMDs are not taken annually, you may be subject to an additional 50% penalty for the amount you were supposed to take. Please note this tool is designed to provide an estimate for individuals age 70 1/2 or older.

An Employee’s Guide to Retirement Savings (Part 1 of 4)

As 401(k) plans have become the predominant form of retirement investing among America’s workers, the level of conversation surrounding investment products and strategies has increased tremendously. Wall-to-wall coverage of investment markets on TV networks and advertisements of various investment products have increased this flow of information. Rather than producing a working population of savvy investors,